With Americans living an average of 78.4 years, it’s more important than ever to have a solid, healthy plan—both physically and financially—for the years ahead. Many find themselves unprepared and often overlook some of the more practical details until it’s something they can no longer avoid.
While genetics definitely play a part in how we age, there are other aspects that we can take control of and plan for proactively to help maintain a higher quality of life. This includes everything from where we plan to live and how we’ll maintain our independence to being prepared for any healthcare needs and long-term care considerations.
Lifestyle Changes
Making small, gradual changes when and where financially possible to your home may help improve your ability to get around and address possible safety concerns. Even minor, inexpensive changes may help you and/or your family members live a more comfortable life as you age.
Maintaining a larger home can become too much to tackle as we age, which can make downsizing a necessity. Whether it’s moving to a smaller home or an age-specific community, the choice is a personal—and often difficult—one to make. Your finances may limit your ability to downsize or relocate, so a thorough review of your situation should be conducted before making any moves.
Healthcare & Long-Term Care Needs
Along with maintaining your routine and proactive doctor visits, you should ensure your long-term care plans align with your goals. For example:
- Have you completed an advance directive for health care, such as a health care power of attorney or a living will?
- Do you have long-term care insurance that can help cover costs not typically covered by Medicare, including assisted living, home health care or even a nursing home?
- Do you have a comprehensive understanding of what Medicare and/or Medicaid covers?
Even with Medicare, individuals may still face healthcare costs related to premiums, co-pays and medications. A complete understanding can help ensure you are budgeting properly.
Financial Health Check
Americans often underestimate how long they’ll live, which goes hand-in-hand with how much it will cost to maintain your lifestyle in retirement. For many, retirement can last 25 to 30 years, if not more.
When it comes to retirement planning, have you considered:
- Diversified income streams, which can include a 401k, Individual Retirement Account (IRA), Social Security or possibly working part-time?
- Reallocating your spending habits to cover the ‘needs’ and not the ‘wants’?
- Updating your estate plan, including a financial power of attorney?
- Engaging a financial advisor to help create a solid roadmap for your future?
On average, you should review your overall estate plan at least annually. If you experience a major life event, be sure to review it sooner to make sure it is updated and meets your current circumstances and wishes.
Preparation is Key
While each individual’s situation is different, proactive planning can help. Being realistic with your goals and addressing potential issues before they happen gives you a head start on living your best life.
Busey Wealth Management’s team of advisors is here to help you create a roadmap that works for you and your situation. To learn more about our services or find an advisor near you, visit busey.com/wealth-management.
This is not intended to provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain their own independent tax advice based on their particular circumstances.
This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.
This presentation is for general information purposes only. It does not take into account the particular investment objectives, restrictions, tax and financial situation or other needs of any specific client.
